| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 2 | — | 17.3x | Bottom tier | |
Growth | 0 | — | 7.1% | Bottom tier | |
Quality | — | — | 4.5% | N/A | |
Safety | 89 | — | 2.6x | Top tier | |
Capital Return | 11 | 0.00% | 0.06% | Bottom tier | |
Momentum | — | — | -1.6% | N/A | |
Sentiment | 83 | 5 | 3 | Top tier |
Fervo Energy develops enhanced geothermal systems EGS to generate electricity, and its Cape Station project in Utah represents its technology's transition to commercial operations and electricity exports to the grid. Its business activity is tied to electricity generation from these projects; on 2026-10-01, it announced the start of commercial operations at the first plant at Cape Station ahead of schedule and the achievement of contractual commercial operations. The project's first phase includes a facility with approximately 100 megawatts of capacity, distributed across three GeoBlocks units with 33 megawatts of capacity each, according to the 2026-09-24 announcement.
In quarter 2 of fiscal year 2026, ended 2026-06-30, revenue was 113000 dollars, net income was -55.9 million dollars, and diluted earnings per share were -0.38 dollars. The gross margin was -170.8% and the operating margin was -25435.4%, while operating cash flow was -34.7 million dollars; these results show that revenue before the commercial operations announced on 2026-10-01 was very limited relative to the company's costs. On the balance sheet for quarter 2 of fiscal year 2026, cash and investments totaled 2.1 billion dollars against total debt of 228.4 million dollars, providing substantial financial resources, but demonstrating Cape Station's ability to convert operations into revenue and cash flow remains central to the investment case.
Q2 FY2026
Automated analysis for informational purposes only — not investment advice.
When: 2026-10-01
Achievement of commercial operations and electricity exports from one plant at Cape Station
When: 2026-09-24
Achievement of first power production from a GeoBlocks unit with 33 megawatts of capacity
The analyst consensus on Fervo Energy is Buy, and the average price target is 40.64 dollars, with the highest target at 51 dollars and the lowest at 27 dollars. The differences between these targets reflect varying assessments of expected growth following Cape Station's transition to commercial operations and do not make any of them a definitive fair value. BofA Securities lowered its target to 30 dollars on 2026-09-25, below the consensus average. For the period ended 2026-06-30, the company ranked 26 out of 33 within its industry on the EL7 valuation axis, which measures the attractiveness of its multiples relative to peers, with a score of 24 out of 100.
Figures in the text are as of 2026-10-12; the live price is shown at the top of the page.
On 2026-09-24, Fervo Energy announced the achievement of first power production at Cape Station in Utah. Then, on 2026-10-01, it announced the start of commercial operations at the first plant ahead of schedule and electricity exports to the grid. The first phase comprises approximately 100 megawatts distributed across three GeoBlocks units with 33 megawatts of capacity each, so operating the first plant demonstrates commercial progress while executing the remainder of the phase remains an important factor.
Fervo Energy recorded net income of -55.9 million dollars on revenue of 113000 dollars in quarter 2 of fiscal year 2026, ended 2026-06-30. The gross margin was -170.8% and the operating margin was -25435.4%, showing that revenue provided weak coverage of costs during that period. The first commercial operations announcement came on 2026-10-01, after the end of this quarter, so the results for quarter 2 of fiscal year 2026 do not establish the profitability of the announced commercial operations.
Cash and investments totaled 2.1 billion dollars against total debt of 228.4 million dollars in quarter 2 of fiscal year 2026, ended 2026-06-30. Meanwhile, operating cash flow was -34.7 million dollars in the same period, meaning the business was consuming cash. On 2026-09-22, the company announced two U.S. Department of Energy awards totaling approximately 20 million dollars for EGS development in Idaho and Nevada, adding dedicated support for development work.
The diluted share count was 157.0 million shares in quarter 2 of fiscal year 2026, ended 2026-06-30, compared with 8.8 million shares in the period ended 2025-06-30. The increase was 1675.2%, a substantial expansion in the share base across which results are distributed. Diluted earnings per share were -0.38 dollars in quarter 2 of fiscal year 2026, but the increase in the share base remains a separate factor when assessing shareholders' share of future earnings.
The consensus is Buy, and the average price target is 40.64 dollars. Targets range between 27 dollars and 51 dollars, showing a wide divergence in expectations. On 2026-09-25, BofA Securities lowered its target to 30 dollars, with one reduction versus zero increases during the displayed ninety-day period.